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Thursday, 17 March 2016

"The Tehran Stock Exchange witnessed positive performances in its shares in the last week of the Iranian Calendar Year, 1394. The TSE All-Share Index rose by 2.4%, closing at 80,219. The index had gone up to 80,236 on Monday but then slipped down from the highest point of the year on Tuesday. The All-Share Index experienced a minor recovery on Wednesday to close at 80,219. The All-Share Index or TEDPIX started the year at 62,531 and recorded a 28.2% yearly growth, closing at 80,219. However, the index had even fallen to 61,163 during the year, recording only a 2.2% draw down. The current Ira­nian Calendar Year ends on Saturday, March 19th 2016. During the year, the average daily return of the index has been 0.11%, while the highest daily gain has been +3.59% and the greatest drop has been -1.8%. The daily changes in the TSE’s benchmark, All-Share Index, puts its risk to reward ratio at 7:1 in the year 1394 (2015/16).

This week the Automotive (+24.8%), Metallic Ore (+11.3%) and Machinery & Electric Equipment (+9.6%) sectors recorded the highest gains among the major sectors. Metallic Products (-3.5%), Sugar (-3.7%) and IT (-3.2%) were the weakest sectors. On a yearly basis, the Automotive, IT and Transportation & Logistics sectors have experienced the highest growth of the major sectors. They have gained 115%, 83% and 72% respectively. The weakest annual performances were recorded by the Rubber & Plastics, Ceramic & Tiles and Cement sectors which dropped by 22%, 4.1% and 3.8% respectively.

From a technical analysis perspective, the All-Share Index has a smooth outlook going forward, having surpassed the 80,000 level. The pace of growth increased slightly during the last week of the year, after a month of slight changes up and down. TEDPIX’s mis­sion for the new year will be reaching the next resistance at 89,500. At the moment, some indicators are showing the index’s potential to start a new round of growth, includ­ing in the Money Flow index, MACD and also Bollinger Bands."

"Qatar Airways remains on the hunt for a stake in the discount carrier IndiGo to add to its portfolio of holdings after failing to buy shares of one of India’s largest airlines at the time of last year’s initial public offering.

“I cannot force the owners to sell a stake to me," said Akbar Al Baker, the chief executive, on Wednesday. “But if they are interested, Qatar Airways will be very interested."

"DP World’s net profit rose by 30.7 per cent last year, beating analyst expectations, thanks to the port operator’s acquisition of a free zone in Dubai in 2014 and growth in throughput, the company said.

The company expects growth this year despite uncertain market conditions. The shares rose 8.8 per cent to US$19 on the Nasdaq Dubai.

“While 2016 is expected to be another challenging year for global trade, we have made an encouraging start to the year and current trading is in line with group expectations," said Sultan bin Sulayem, the chairman and chief executive."

"Iran could begin making parts for Airbus Group SE aircraft under plans being discussed following January’s historic agreement to purchase 118 jetliners from the European manufacturer.
Airbus’s Middle East office said the company is evaluating areas of industrial cooperation with Iran that may include component production and maintenance and overhaul work.
Iran developed an ability to make plane parts in order to keep its aircraft flying during years of economic sanctions. Iranian Aviation and Space Industries Association President Amin Salari said in an interview in Tehran that it can offer both “a level of know-how” and very competitive labor costs."

The Cairo index jumped 3.6 percent to 7,486 points in the second heaviest trading volume for the past seven years; the heaviest day of trade was on Monday, when the devaluation raised hopes that Egypt could attract more funds from abroad and begin resolving its endemic foreign exchange shortage.

The index soared 14 percent this week, rising above its 200-day average for the first time since March 2015 - a technical indicator which suggests the market could be entering a long-term uptrend."

"Saudi Arabia's stock market rose in early trade on Thursday after oil prices jumped overnight, while Egypt headed for a fourth straight day of gains following its currency devaluation.

The Saudi stock index added 1.0 percent, led by the oil-sensitive petrochemical sector, which rose 1.7 percent after outperforming on Wednesday.

Egypt, which had climbed 10 percent in the previous three days, added a further 1.2 percent. This week's devaluation has raised hopes for foreign capital flows into the market, though most of the stock purchases in the last few days have been by local investors."

"The first legislative steps to create a more investor-friendly environment in post-revolutionary Iran were taken almost two decades ago when the government introduced investment incentives such as tax, customs and visa exemptions, guarantees, and transportation facilities, as well as efficient labour, banking, insurance and corporate-related services. The aim was to expedite economic growth, create more jobs and attract foreign investment. To this end, the regulators adopted the Law on Investment in Free Trade-Industrial Zones in 1993 and the Law on the Establishment and Management of Special Economic Zones in 2005 governing commercial activities in Free Trade Industrial Zones (FTIZs) and Special Economic Zones (SEZs).

There are currently over 45 different legal and regulatory frameworks, bylaws and state decrees governing commercial activities in FTIZs and SEZs. This “regulatory inflation” has turned into a source of confusion for foreign investors while undermining their ability to maximise benefits from the investment incentives offered by these Zones.

This short guide aims to offer a comparative review of the key legal and regulatory similarities of these Zones. "

"Royal Dutch Shell and Saudi Aramco are unwinding their US refining and marketing joint venture as they pursue separate strategies for their operations. The deal will give the state-owned Saudi group full ownership of the largest refinery in North America.
The Motiva joint venture, which is owned 50/50 by the two companies and operates three refineries and a distribution and marketing business in the US, will be broken up and the assets distributed between them."

"Deutsche Börse and the London Stock Exchange said they expected to cut costs by €450m (£354m) a year as they sought to press on with their agreed £20bn deal and ward off a potential rival bid from the US.

The exchanges set out the terms and benefits of what they described as a merger of equals. As expected, Deutsche Börse shareholders will own 54.4% of the new company with LSE shareholders owning the remainder.

After the potential deal was announced last month, Intercontinental Exchange (ICE), the owner of the New York Stock Exchange, revealed it was considering making a rival offer for LSE. ICE was reported to have hired investment bankers to advise on a potential deal and Chicago’s CME Group was also said to be watching events with a view to making a bid."

"If history is any guide, Egyptian stocks’ world-beating gains in three days following the nation’s currency devaluation may be just beginning.
The EGX 30 Index has jumped 10 percent since Monday’s 13 percent weakening of the pound. The gains are an echo of what happened in January 2003, when a foreign-currency shortage that gave rise to a black market for dollars and deterred investment led policy makers to devalue the currency by 14 percent. On that occasion, stocks went on to more than double in value as foreign-reserves recovered."

"United Arab Emirates bourses rose early on Thursday in response to higher oil prices and strong global equity markets, while a few blue chips weighed on Qatar, which was flat.

The Dubai index rose 0.8 percent in the first hour as Gulf Financial Group, the most heavily traded stock, climbed 3.7 percent.

On the neighbouring NASDAQ Dubai exchange, port operator DP World rose 3.8 percent after posting a 30.7 percent rise in annual profit and set its 2015 ordinary dividend at $0.30 per share, against $0.235 paid for 2014."